Luxottica Group, the owner of Ray-Ban, has expressed concerns over its performance this year following a drop in º£½ÇÊÓƵ sales and profit in 2024.
The º£½ÇÊÓƵ division of the group anticipates that the rising cost of goods and services will adversely affect its gross and operating profit this year, as reported by .
Additionally, the group highlighted that the increase in employer's National Insurance contribution to 15 per cent – announced by Chancellor Rachel Reeves in her Autumn Budget – will "further put strain on an already high rate of labour cost inflation."
This cautionary note about future performance comes as the Ray-Ban parent company reported a turnover of £165.8m for 2024 in the º£½ÇÊÓƵ, a decrease from £168.1m the previous year.
Newly filed accounts with Companies House also reveal a dip in the group's pre-tax profit from £7.4m to £6.7m over the course of 12 months.
The broader Luxottica Group, which is based in Italy and listed on the New York Stock Exchange, was established by Leonardo Del Vecchio in 1961. The group also owns Sunglasses Hut and brands such as Persol, Oliver Peoples, and Oakley.
Ray-Ban owner concerned about inflation
In a statement approved by the board, it was noted: "Turnover has decreased... due to a slowdown in foot traffic."
Attributing this to weather conditions, the statement added: "This was related to a very cool summer, said to have been the coolest summer since 2015."
The Ray-Ban owner further stated: "We continue to experience inflationary pressures on most cost lines, in particular labour costs.
"This cost is increasing at a faster pace than inflation due [to] constraints in the supply of workers (continued increase in long-term sickness in the wake of the pandemic), which has already experienced post-Brexit shortages in some sectors.
"Additionally, the increase in employer contribution of National Insurance to 15 per cent as of 1 April, 2025, will further put strain on an already high rate of labour cost inflation.
"Despite this the company remains profitable in 2024."
The group also stated: "The directors consider that in the coming year the business will continue to see a positive improvement in performance attributed to some key investments.
"The increase in costs of goods and services will negatively affect the gross profit and operating profit offset by the company's strong cost control in place.
"2025 continues with consistent growth on [compared to the] prior year, but for the coming months there are rising concerns about inflation and performance of international channels being affected by the geo-political situation."
